From Malaysia to Saudi Arabia understanding the new Muslim consumer.
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1 From Malaysia to Saudi Arabia understanding the new Muslim consumer.
2 Why? We believe that the global Muslim community has been underserved as consumers by brands and companies. Islamic Branding is one of the next big global growth opportunities - the Halal market alone is worth USD 2.1trillion annually. While the economic opportunity is clearly evident, we believe we need to genuinely understand the Muslim consumer.
3 5 useful words the global Muslim community - Ummah a set of guiding life principles, a mental and moral compass - Shariah light, enlightenment - Noor acceptable to Muslims, in accordance with good practice - Halal forbidden to Muslims - Haraam
4 There are a staggering 1.8 billion Muslims living across the world today.
5 Where do most Muslims live? Country Muslim population 1. Indonesia 188,619, Pakistan 144,788, India 131,213, Bangladesh 118,512, Turkey 67,864, Iran 67,610, Egypt 64,647, Nigeria 54,891, Algeria 31,729, Morocco 31,642,000
6 But also... In Europe In North America 53 million Between 2.5 and 7 million In Russia Between 14.5 and 20 million In China 21.7 million
7
8 They are young. 52.5% of the population in these countries is under 24 years old. They have the potential to deliver the Demographic Dividend * of India and East Asia. Together, Muslim youth account for 11% of the world s population. *Demographic Transitions and Economic Miracles in Emerging Asia, David Bloom
9 To date, the Muslim consumer has been commonly misunderstood. Common errors: Stereotyping Insensitivity Over-simplification Causing many marketers to stumble, inadvertently offend, fail to cross borders, or fail to resonate.
10 It is our challenge to understand them. In 2008, the GDP of the 5 large countries in and around the Middle East -Egypt, Iran, Pakistan, Saudi and Turkey -a population of 420 million -was $3.3 trillion - the same size as India but at 1/3 of the population. -Vali Nasr, Forces of Fortune, 2009 The soft revolution's combination of conservative symbols, like Islamic dress, with contemporary practices, like blogging, may confuse outsiders. But there are few social movements in the world today that are more important to understand. Robin Wright, TIME, 2009
11 What have we done so far? A two-year piece of global research, conducted in partnership with TNS. In depth analysis of the state of Islamic Branding and the needs of the New Muslim Consumer. Established partnerships with leading Islamic scholars and academics globally. Published the pioneering study, Brands, Islam and the New Muslim Consumer a landmark development in the field.
12 Our approach is new. We start by understanding core Islamic values - the values of the Shariah. honesty, sincerity, respect, community, consideration, kindness, peacefulness, purity, authenticity, patience, discipline, transparency, trustworthiness, moderation, modesty, understanding, humility, selfimprovement, equality, dignity. This is not an exhaustive list, but one developed through consultation with religious scholars and academics.. We believe these are values that most Muslims would recognise as being core to their faith.
13 And then we analyse how these values translate into actual consumer behaviour in daily life.
14 Our definition of Islamic Branding Branding that is empathetic toshariahvalues in order to appeal to the Muslim consumer ranging from basic Shariahfriendliness to full Shariahcompliance in all aspects of the brand s identity, behaviour and communications.
15 We ve learned a lot about Halal and Shariahcompliance. Brands and companies are considered liable to good Shariahcompliant behaviour, just as people are. It cannot be a tokenistic on-pack gesture, or lived only through a Muslim-friendly variant/ sub-brand. It needs to be lived and breathed as a core value system by the entire company behind the brand. It is deeply reassuring, and in majority-muslim markets, taken for granted. It is only when brands fail to demonstrate their Shariah-friendliness that they get into trouble.
16 The Noor Category Index How important is Shariah-compliance in each category? Note on the data: All ratings were captured at a sub-category level. Sub categories ratings within each category measured were aggregated to provide a one score index for each category.
17 Our research has pointed us to the emergence of the New Muslim Consumer
18 Our deep segmentation charts an evolution... The Synthesizers (6%) The Movers (6%) THE FUTURISTS The Connected (27%) Religion Individuates Me Religion Connects Me Religion Enables Me Religion Identifies Me The Identifiers (27%) Religion Centres Me Religion Purifies Me THE TRADITIONALISTS The Grounded (23%) The Immaculate (11%)
19 We call the New Muslim Consumers the Futurists. They are driven by pride in who they are, and by their reach for success in all that they do.
20 They look confidently to the future. technology-savvy/ innovation-loving/ globally-travelled/ well-educated
21 But stay firmly rooted in the values that define them. Family values/ togetherness and community/ respect/ religious ritual/ cultural heritage
22 They are fully engaged with the world, but are defining their own place in it. "There is more self-confidence in the Islamic world today about dealing with reason, constitutionalism, science and other big issues that define modern society. The West is no longer the only worldview to look up to. There are other ways of sharing the world and negotiating your place in it. Ibrahim Kalin, the Foundation for Political, Economic and Social Research, Ankara.
23 They are the New Muslim Consumers. proud to be Muslim unafraid to challenge driven by success demand the very best take no prisoners We call them The Futurists open to the world demand a fair hearing rooted in who they are
24 When it comes to brands, they are forging new relationships. Brands are important as tools in identity-building. Brands can make them feel globally connected, and up-to-speed. Brands can reassure, and provide a link with heritage. Brands can make them feel actively involved in their communities. Brands are expected to engage in honest, open, equal dialogue. Brands are expected to take their values as a starting point. But brands can also disappoint, and let them down. When they succeed, brands today are openly welcomed into their core inner circle of trust and loyalty.
25 BRAND Noor Index Score* Lipton 131 Nestlé 130 Nescafé 122 Nido 118 Kraft 117 Maggi 117 Mirinda 110 Pringles 110 Lay s 110 7Up 109 Colgate 108 Lux 108 Sunsilk 105 Close Up 103 Dove 103 Pantene 102 Rexona 102 Head& Shoulders 101 Heinz 101 Nivea 98 Fair& Lovely 97 Pepsi 95 Coca-Cola 94 Air Arabia 91 L Oréal 90 Axe 88 Emirates 85 Red Bull 78 Etihad Airways 77 Singapore Airlines 63 Cathay Pacific 62 Citibank 59 Standard Chartered 54 HSBC 51 RBS 47 *Numbers represent the % agreement with the statement this brand is completely Halal or Shariah-compliant, averaged across our four markets. The Noor Global Brand Index 2010 How Muslim-friendly are global brands today?
26 CIMB Islamic
27 Why is it successful? Inclusive Muslim-friendly values Progressive and innovative Collective
28 Nokia
29 Why are Nokia successful? User-friendly, accessible to all Shariah-friendly values Innovative in local content Caring personal touch A means of self-expression
30 Ülker
31 Reason for success? Belief in children One of us Moves with the times Socially responsible
32
33 Our pioneering study delivers practical, expert guidance in building brands that are empathetic to core Muslim values in order to appeal to the new Muslim consumer today.
34 This approach puts the Muslim consumer first, for the first time. We start by understanding Muslim consumer values. Purity Honesty Humility Discipline Togetherness Image-consciousness And then analyse what they mean for brands. Be authentic in word and deed. Be transparent. Avoid hubris. Display efficiency. Be part of the community. Help project the right image.
35 Huge surge of interest.
36 "My Lord! Enrich me with knowledge..." (Qur'an, 20:114)
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